Proposal: Increase the trading liquidity limit in the MFG pool from 200k BNT to 400k BNT

DAO Archive (SUBMITTED)
1

Increase the trading liquidity limit in the MFG pool from 200k BNT to 400k BNT

For this proposal to pass, it requires a 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on 2022-05-07T23:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.

TL;DR

  • The MFG pool has recently been whitelisted (Snapshot).

  • The MFG liquidity balance has recently been increased from 50k to 100k BNT (Snapshot).

  • The MFG liquidity balance has recently been increased from 100k to 200k BNT (Snapshot).

  • The MFG liquidity balance is currently full.

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  • If the pool is filled, it should be the deepest pool on Ethereum

  • The MFG liquidity on other decentralised exchanges justifies proposing an increase.

  • Increasing the pool’s liquidity will improve price impact and help direct more volume to Bancor.

  • This proposal seeks to increase the trading liquidity limit in the pool from 200k BNT to 400k BNT.

  • Smart MFG will fill ANY remaining liquidity balance with their treasury as needed.

  • Smart MFG will incentivise the MFG pool on Bancor v3 with liquidity mining rewards.

  • We will also redirect or inform/promote this new LM campaign on our dashboard at https://rewards.smartmfg.io/. Current Uni v3 campaign ended in March and Smart MFG will prepare for the LM campaign after the release of Bancor v3. Official thread announcement found here: https://twitter.com/MFGcoin/status/1509300650970017793?s=20&t=oa2ubZoV8U_4pkkT1doBMg

Rationale

The Deepest MFG pools are:

The MFG/ETH 1% Uniswap v3 pool with $658.27k liquidity, and $57.28k daily volume [1].

The MFG/USDC 1% Uniswap v3 pool with $4.68k liquidity, and $0 daily volume [2].

The MFG/DAI 1% Uniswap v3 pool with $353.64 liquidity, and $0 daily volume [3].

The MFG 0.3% Bancor v2.1 pool with $739,385 liquidity, and $$9,116 daily volume [4].

The extra liquidity would bring the total pool liquidity to at least ~$1,478,770, if the space in the pool is filled. If this happens, a proposal to increase the trading liquidity limit again should be considered.

FOR

Increase trading liquidity in the MFG pool from 200k BNT to 400k BNT.

AGAINST

Keep the trading liquidity in the MFG pool at 200k BNT.

[1] Uniswap Info

[2] Uniswap Info

[3] Uniswap Info

[4] Bancor: Converter 638 | Address 0x349419BcE4181d7D223442Fa48Ba9e611173A745 | Etherscan

2 Likes
2

Nice - I think this proposal makes sense.

1 Like
3

Thanks as always @eldude :facepunch: